Kuwait Court of Cassation principle number 1856

Composition to avert the bankruptcy of customers whose debts were purchased pursuant to Law 41 of 1993. Its condition. Submission of an application therefor by the customer, as debtor or guarantor, or by the Public Investment Authority, to the competent chamber of the Court of First Instance, which may rule either to continue hearing the bankruptcy petition or to approve the composition where its conditions are satisfied and ratify it. The effect thereof. The effect of this judgment extends to those debtors or guarantors who were parties to the composition, to the exclusion of others who were not parties thereto, and the rule prohibiting - 323 - Commercial appeals against the judgment ratifying the composition applies. Article 870 of the Commercial Code. The court's exceeding the scope of this composition and extending its effects to persons who were not parties thereto. Its consequence. That in which it exceeded that scope falls outside the application of the preceding rule, and its judgment may be challenged through the methods of appeal prescribed by law.